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The group made most of its money through high interest rates charged on large gambling loans to clients. It is 20 years since reporting on illegal prostitution by The Courier-Mail, and follow-ups by the ABC, led to the Fitzgerald inquiry and the subsequent exposure of a corrupt police force involved in running brothels and accepting bribes in return for protection.

There is no suggestion police are involved in the current resurgence of illegal prostitution. On the contrary, they are hamstrung in their efforts to stem the growth of illegal operators. Invitations for the police to comment for this series of articles were declined.

Its members pay tens of thousands of dollars in licence fees, income and company tax, only to see the illegal industry thrive, tax-free. Mr Inskip said the illegal industry had been transformed by technology. In Queensland, about 25 per cent of the sex industry is legal and takes the form of licensed brothels.

Mr Inskip said the illegal industry had organised individual workers into networks of what otherwise would appear to be legal solo sex workers. He said there was evidence of the illegal industry recruiting teenage schoolgirls to work as escorts and perform sex work after school hours. One sex worker, Mr Inskip said, had told him she and her friend were recruited when year-old schoolgirls in a regional centre by a woman from an illegal brothel.

They told him the enforcers included a number of taxi drivers and that the operation was highly organised. Legal solo sex workers in the bush had told him of organised illegal sex workers moving from town to town providing services advertised in local papers. Several of those interviewed told The Courier-Mail the current law that allowed prostitutes to operate provided they worked alone was almost impossible to enforce as any illegal organisation behind them was virtually invisible.

Some solo sex workers were acting legitimately when they obtained clients themselves and illegally when they accepted clients offered by syndicated phone and escort services. An illegal operation could change identity simply by replacing SIM cards on mobile phones. The contradictions in the regulation of prostitution are easy to find.

Mr Inskip said illegal agencies that advertised in the Yellow Pages did not openly admit to offering sex services, so without using entrapment techniques, police would have difficulties obtaining evidence to close them. And even if they did entrap and charge a sex worker, the escort agency could claim it had arranged a meeting for companionship only. It was not in control of events and any exchange of money after that was strictly between the sex worker and the client.

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